Business & Investment

OVL plans to issue $ 400 million in foreign bonds to repay part of its debt

New Delhi: ONGC Videsh (OVL), Overseas division of state-owned explorers Petroleum Natural Gas Co., Ltd.Plans to raise about $ 400 million in foreign currency bonds to partially repay debt According to people with knowledge of the problem, it was taken to fund the purchase of shares in the huge Mozambique gas field.

ONGC Videsh raised 525 million rupees in July 2014 through a seven-year bond to partially fund the acquisition of $ 4.12 billion worth of shares in Mozambique Block. These bonds have a fixed coupon of 2.750% per annum, are guaranteed by the parent ONGC and will expire in July. The company holds a 16% stake in Mozambique’s offshore Rovuma Area 1.

The ONGC unit will have to reclaim the bond market to repay about three-quarters of Rs 525 million, but the rest can be repaid using internal cash flow. The company plans to buy foreign currency-denominated bonds again.

ONGC Videsh raised approximately $ 700 million in debt in November to repay the $ 775 million loan. About 10% of this loan was repaid using internal resources.

Production in the gas fields of Mozambique has been delayed for several years and the expected cash flow has not yet begun, requiring the company to refinance its debt from previous rounds. This field is scheduled to go into production in 2024.



OVL plans to issue $ 400 million in foreign bonds to repay part of its debt

https://economictimes.indiatimes.com/markets/stocks/news/ovl-plans-400-mn-overseas-bond-issue-to-partly-repay-its-debt/articleshow/80464409.cms OVL plans to issue $ 400 million in foreign bonds to repay part of its debt

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